Lean Performance Measurement

1 day
Workshop / Implementation depends on size of your company

Many consultants and organizations have tried their hand at implementing Lean, but
find it difficult to measure their success. The problem is we try to maintain the measurables that were put in place prior to Lean transformation. Since it is believed that measurements drive
action, we need to measure the things we want to change. In a traditional "push" enviroment, we measured output and efficiency by department and machine. The goal was to keep people and
machines busy and these types of measures made that the focus. In retrospect, it is not surprising that we built up piles of inventory between departments, and extended our total production lead-time
(i.e., the time from first operation to last operation).

In a Lean enviroment we want focus process flow and lead-times to be as short as possible. How can we drive that change?
By measuring lead-times and showing the results to those who can make it happen. Similarly if changeover times need to be reduced, measure them and share the results on a team information board. We
need to select measurables that drive behavioral change, as changing organizational culture is a key approach to overcoming barriers to performance improvement. But how do you change culture?
One key element is performance measurements. "What gets measured gets done!" so if we want to get Lean, we need to use performance measures that promote Lean behavior.

When utilized correctly measurement motivates. When we provide feedback for a particular performance measure, we send a message: "This is important! This needs attention!". At the same time,
we indicate how well were doing, (i.e., whether we're winning or losing). Most employees want to do well; if we tell them what "good" is, they will work to achieve it.

Course DescriptionThe alignment of performance measurements from the top of the company through all employees is essential for successful Lean
Conversion. In this workshop, we will present a series of standard, tried-and-tested performance measurements that are used in Lean environments. As anything in life goes, you can't improve what you
can't measure. Participants will be provided with the framework and methods for developing and aligning performance measures and reward systems.

Learning Objective

Participants will learn:

What to measure

How to measure it

How to react to the
output.

Who Should AttendAccounting department, executives, supervisors, quality department, and the continuous improvement expert within the
company.